Regulators give green light to additional United Airlines stake in Brazil’s Azul
January 3, 2026
United Airlines has been given the green light by Brazilian regulators to increase its stake in Azul Linhas Aéreas Brasileiras to just under 10%.
The American company’s increased presence in the São Paulo-based carrier comes as part of Azul’s Chapter 11 Bankruptcy proceedings in the United States.
The move is important for two key reasons. Firstly, it is a significant step in ensuring Azul’s financial stability, as the deal is valued at roughly US$100 million. Secondly, it represents a strategic move from United as it de facto expands its reach in South America via Azul.
Azul & United receive green light from Brazil
On 31 December, the two companies received word from the Brazilian Administrative Council for Economic Defense (CADE) that the shareholding increase had been approved “without restrictions,” wrote Alexandre Barreto de Souza, the body’s General Superintendent in the official release.
In other words, where other such deals might have required concessions or additional action, this does not. The transaction will see United Airlines increase its stake in Azul from the current 2.02% to just over 8% worth roughly US$100 million.
IPS Consumo (the Institute for Research and Studies of Society and Consumption) challenged the deal at the start of December, requiring it to be examined in detail by the CADE Tribunal, which has now been completed. However, IPS Consumo argues that the decision was made too quickly (15 days).
The Institute believes that the deal could ultimately harm consumers. United and American Airlines will both now have stakes in Azul while also maintaining ties with the company’s competitors, Avianca and GOL owned by Abra Group.
American partners with GOL and United has links to fellow Star Alliance carrier Avianca.
Azul’s Chapter 11 Bankruptcy protection
The United States Bankruptcy Court of the Southern District of New York approved Azul’s reorganisation plan it said in a filing on 12 December. This followed a meeting with creditors, during which the plan received “overwhelming support”.
A core part of the programme includes dealing with more than USD$2 billion in debt while also providing additional financing. This involved ofering roughly USD$950 million in new equity, consisting of USD$650 million from shareholders and up to USD$300 million from partners including American Airlines and United Airlines. Both carriers provided USD$100 million each.
American Airlines also took an 8.5% stake in the carrier, according to Bloomberg.
Azul hopes to emerge from bankruptcy protection during the first quarter of 2026. It has already taken considerable steps in reorganising its operation, from adjusting contractual obligations with lessors to downsizing its existing and future fleet. Its Embraer E195-E2 commitment, for example, will reduce from 51 to 25 E195-E2 aircraft.
It has also made adjustments to its network. Crucially, as first revealed by this publication, it has decided to indefinitely suspend its longest European route to Paris in favour of higher-yielding markets in North America.
Azul filed for bankruptcy proceedings in May last year.
United Airlines’ investment in Azul
Though United Airlines is likely to maintain its strong ties with Avianca, the deal in Azul signifies a continued interest in the South American market – particularly Brazil.
It is also a way to counterbalance American Airlines’ presence in the market which also has a strong partnership with GOL. GOL also underwent bankruptcy protection reorganisation and exited Chapter 11 proceedings in June.
Information from aviation analytics firm Cirium shows that this month, United Airlines will operate roughly 106 weekly flights to South America. Around 1/3 of these are to Brazil, representing five daily routes that connect some of its US hubs to São Paulo and Rio de Janeiro.
